1. CHAPTER 05
Organizational Structures That Support Strategic Initiatives
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. LEARNING OUTCOMES
Define the primary IT roles along with their associated responsibilities.
Explain the gap between IT and business professionals.
Explain why ethics and security are fundamental building blocks of business today.
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3. ORGANIZATIONAL STRUCTURES
Organizational employees must work closely together to develop strategic initiatives that create competitive advantages
Ethics and security are two fundamental building blocks that organizations must base their businesses upon
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4. IT ROLES AND RESPONSIBILITIES
Information technology is a relatively new functional area, having only been around formally for around 40 years
Recent IT-related strategic positions:
Chief Information Officer (CIO)
Chief Technology Officer (CTO)
Chief Security Officer (CSO)
Chief Privacy Officer (CPO)
Chief Knowledge Office (CKO)
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5. IT ROLES AND RESPONSIBILITIES
Chief Information Officer (CIO) —Oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives.
Broad CIO functions include:
Manager—Ensuring the delivery of all IT projects, on time and within budget
Leader—Ensuring the strategic vision of IT is in line with the strategic vision of the organization
Communicator—Building and maintaining strong executive relationships
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6. IT ROLES AND RESPONSIBILITIES
Chief Technology Officer (CTO)—Responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT
Chief Security Officer (CSO)—Responsible for ensuring the security of IT systems
Chief Privacy Officer (CPO)—Responsible for ensuring the ethical and legal use of information
Chief Knowledge Office (CKO)—Responsible for collecting, maintaining, and distributing the organization’s knowledge
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7. IT ROLES AND RESPONSIBILITIES
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8. THE GAP BETWEEN BUSINESS PERSONNEL AND IT PERSONNEL
Business personnel possess expertise in functional areas such as marketing, accounting, and sales
IT personnel have the technological expertise
This typically causes a communications gap between the business personnel and IT personnel
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9. IMPROVING COMMUNICATIONS
Business personnel must seek to increase their understanding of IT
IT personnel must seek to increase their understanding of the business
It is the responsibility of the CIO to ensure effective communication between business personnel and IT personnel
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10. ORGANIZATIONAL FUNDAMENTALS ETHICS AND SECURITY
Ethics and security are two fundamental building blocks that organizations must base their businesses on to be successful
Events like the Enron and Bernie Madoff scandals, along with 9/11, have shed new light on the meaning of ethics and security
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11. ETHICS
Ethics—The principles and standards that guide our behavior toward other people
Privacy—The right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent
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12. ETHICS Issues affected by technology advances: Intellectual Property
Copyright
Fair Use Doctrine
Pirated Software
Counterfeit Software
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13. SECURITY—HOW MUCH WILL DOWNTIME COST YOUR BUSINESS?
A few questions companies should ask when determining the cost of downtime include:
How many transactions can the company afford to lose without significantly impacting business?
Does the company depend upon one or more mission-critical applications to conduct business?
How much revenue will the company lose for every hour a critical application is unavailable?
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14. SECURITY—HOW MUCH WILL DOWNTIME COST YOUR BUSINESS?
A few questions companies should ask when determining the cost of downtime include:
What is the productivity cost associated with each hour of downtime?
How will collaborative business processes with partners, suppliers, and customers be affected by an unexpected IT outage?
What is the total cost of lost productivity and lost revenue during unplanned downtime?
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15. PROTECTING INTELLECTUAL ASSETS
Organizational information is intellectual capital and must be protected
Information Security—The protection of information from accidental or intentional misuse by persons inside or outside an organization
Ebusiness automatically creates tremendous information security risks for organizations
Most information security breaches result from people misusing an organization’s information either intentionally or inadvertently
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